New government advice suggests that cuts to social rent levels could hamper developments as social landlords struggle to pay for properties pledged under planning obligations.
Graham Jones, the POS s106 and Infrastructure subject specialist, told Planning magazine that there is already evidence of developers being unable to find housing associations willing to take on the affordable rent element of some schemes. He said feedback from members indicates that agreements on 'affordable rent' properties, which can be let for up to 80 per cent of market rates, are priving problematic, meaning that the situation would be even worse for social rent properties, pegged at much lower rates. "It is inevitable that the affordable housing mix is going to move towards more intermediate tenures - including Starter Homes when the Houding and Planning Bill becomes law," he said.
Jones added that councils so far seem prepared to negotiate changes in affordable tenure if the proportion is unaltered.